Hawaii FEP - Western Pacific Fishery Council

10,000,0008,000,0006,000,0004,000,0002,000,00001984 1990 1995 1999Inflation-adjusted Revenue ($)Figure 17: NWHI Lobster Fishery Inflation-adjusted Ex-vessel Revenue, 1984-1999The average gross revenue per trap declined sharply since 1997 due to the overall decrease inCPUE and the higher catches of slipper lobsters which have a smaller average size and lower exvesselvalue in comparison to spiny lobsters (Kawamoto and Pooley 2000).A cost-earnings study of the NWHI lobster fleet was conducted by Clarke and Pooley (1988)based on economic data collected in 1985 and 1986. The study found that despite recordrevenues in the fishery in 1986, fishermen as a group earned little or no economic profit. Lowfleet net returns appeared to be tied to high fishing costs and diminished average catch rates.However, that study did not reflect the later operational characteristics of the fleet, as the fisheryin the mid-1980s was essentially a year-round fishery.In the mid-1980s, adjustments in the regulatory regime for the fishery changed the economicconditions of the fishery (Pooley and Kawamoto 1998). Because the fishery became seasonalrather than year-round, start-up costs became significant determinants in yearly participation bypermit holders. The brief fishing season meant that fixed costs had to be amortized over a shortertime period. Similarly, travel costs become a higher percentage of total costs due to a decrease inthe number of fishing days per trip. The establishment of area-specific quotas in 1998 and theresultant successive closure of banks during the 1998 and 1999 seasons as quotas were reachedcaused an increase in travel times and associated vessel operating costs as vessels were forced tomove from bank to bank.At least some of the permit holders were able to adapt to these changing economic conditions.Fishery participants during the 1998 season realized a positive return on operations (grossrevenues less operating costs) and were able to cover a portion of their fixed costs. In addition,the market value of the freely transferable limited access permits indicated that both economicand financial profits could still be earned in the fishery. Although the price of transferred permits107